The average price of new detached homes in the Greater Toronto Area (GTA) has surpassed $1 million for the first time, says a Building Industry and Land Development Association (BILD) report.
According to Altus Group data, as of March 31 the average price of new detached homes available for sale in the GTA was $1,045,659.
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The new detached home average price has grown by 21% in 12 months and in the last decade it has more than doubled. In March 2015 the average was $861,848 and in March 2006 it was $439,294.
BILD president and CEO Bryan Tuckey attributes much of the dramatic price increase to the supply of new housing not keeping pace with demand due to government intensification policies and a lack of serviced developable land.
There were 905 detached homes sold in March, down 9% from March 2015 and 3% below the 10-year average. As of March 31, across the entire GTA, there only 1,634 new detached homes available for sale in remaining inventory. In March 2006 there were 11,149 detached homes in remaining inventory.
Tuckey said the home building and land development industry continues to meet the province’s intensification requirements and is building more townhomes and high-rise condos, but the demand for new detached homes remains strong.
The average price for low-rise homes overall, which includes townhomes and semi-detached homes as well as detached houses, also set a new record when it reached $849,312 in March. This is a 15% increase from March 2015.
The average price of a new townhome reached $672,419 while new semi-detached homes averaged $612,487.
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“New low-rise homes are being purchased faster than they can be brought to market,” Tuckey said. “As long as demand for low-rise homes continues to outpace supply, we will continue to see rapid price growth.”
There were 2,032 low-rise homes sold in March, an increase of 16% from March 2015 and 26% more than the 10-year average. As of March 31 there were only 3,036 homes in remaining inventory, a new record low. Ten year ago there were 16,757 low rise homes in remaining inventory.
With many first-time buyers unable to afford a low-rise home, the high-rise market provides a more affordable option due to its more moderate price increase.
The average price of a new high-rise home increased 2% from March 2015 to $459,231. On a price per square foot basis, prices increased 4% to $582.
The high-rise market recorded 1,560 new home sales in March, down 22% from March 2015 and 12% below the 10-year average. A detailed sales table broken down by region is available below.
Meanwhile high-rise inventory decreased to 18,280 across the GTA.